W C Wood Company A Case Study Solution and Analysis
Introduction
W C Wood Company A Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering details, processing info and communication services. Major service sections of the company consist of; books, regulars, consultancy and distribution. The company has a vast product portfolio and its significant items consist of books, regulars, online media, exhibitions, research study reports and so on. W C Wood Company A Case Study Solution has actually become a specialized info supplier and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and W C Wood Company A Case Study Solution in specific. These factors include;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
W C Wood Company A Case Study Help has particular strengths that can be made use of to decrease the threats, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of W C Wood Company A Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong financial position allows the business to consider a number of development opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which could increase constraints for the company in implementing its development program. The weaknesses of W C Wood Company A Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, affecting W C Wood Company A Case Study Solution as well, but the growth might be revived by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has postured particular hazards to W C Wood Company A Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of W C Wood Company A Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular techniques like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market in addition to presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The business has a quite competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP might not be computed. However, the total monetary efficiency of the company might be analyzed by using the charts given up the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of W C Wood Company A Case Study Analysis is growing and the company is quite efficient in drawing in a a great deal of clients at a prospective rate.
Together with it, the 2nd chart which shows the yearly development in the W C Wood Company A Case Study Solution total properties, shows that the business is quite efficient in adding value to its assets through its incomes. The development in possessions shows that the total value of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis concerning the distribution of total earnings of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sections with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces impacting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out useful products etc. China has the highest population in the world with a high population growth, revealing the increasing variety of consumers of the W C Wood Company A Case Study Help. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and technology in addition to the rise of digital publishing could minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting W C Wood Company A Case Study Solution consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to analyze the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the files provided in the digital libraries on certain sites. The changing consumer choices towards digital learning increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the W C Wood Company A Case Study Analysis include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of W C Wood Company A Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also among the prominent players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the company need an instant service to prevent the declining market growth. Intro of digital publishing could prove to be an immediate service with low quantity of risk for the business. The business could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business should initially gathers the information related to the consumer demand, the prospective markets, the federal government guidelines and the data related to the rivals provided in the market. If the initial offering proves a success, the company should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, showing a danger to the business's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
